Chaeto in refugium

[snowlynx]

is this bad or normal?

I bought this handful of chaeto from lfs few days ago.
It is light green on one side and dark green the other side.

Is the dirty grey stuff, wrotting chaeto? leave it or remove it?

There are quite a few copepods crawling around in it.

I put a sponge on the refugium pump intake so it's not from the main tank.